R&T(002790) 海通证券·2024-05-06 01:03Investment Rating - Outperform rating maintained for the company [17] Core Views - The company has effectively capitalized on the opportunities in the smart bathroom industry, with significant progress in domestic market expansion for its own brand [7] - In 2023, the company achieved domestic revenue of RMB 1.649 billion, a year-on-year increase of 17.26%, while overseas revenue declined by 3.23% to RMB 536 million [7] - The company's smart toilet and cover business generated revenue of RMB 1.266 billion, up 25.90% YoY, while the same-floor drainage system products saw a 17.72% increase in revenue [7] - The company is expected to continue its growth trajectory in 2024, focusing on consumer demand and expanding its product portfolio to include a wider range of smart bathroom products [7] Financial Performance and Forecast - The company reported revenue of RMB 2.184 billion in 2023, an 11.47% YoY increase, with net profit attributable to shareholders of RMB 219 million, up 3.59% YoY [19] - For 2024Q1, the company achieved revenue of RMB 523 million, a 32.30% YoY increase, and net profit attributable to shareholders of RMB 59 million, up 47.15% YoY [19] - The company's gross margin improved to 29.53% in 2023, up 4.72 percentage points YoY, driven by higher gross margins in the smart toilet and cover business (30.12%) and the water tank and accessories business (25.80%) [22] - Sales expenses increased by 92.86% in 2023, primarily due to increased brand promotion efforts [22] Business Segment Analysis - Smart toilet and cover business is expected to grow significantly, with projected revenue of RMB 1.646 billion in 2024, a 30% YoY increase, and further growth to RMB 2.530 billion by 2026 [10] - The same-floor drainage system products are forecasted to generate revenue of RMB 256 million in 2024, up 22% YoY, with steady growth expected through 2026 [10] - The water tank and accessories business is expected to see modest growth, with revenue projected to reach RMB 645 million in 2024, a 4% YoY increase [10] Valuation and Peer Comparison - The company's 2024E PE ratio is 17.5x, compared to an average of 11.9x for peers in the same industry [23] - The company's valuation is supported by its leading position in the smart toilet and water tank components market, with a projected 2024 net profit of RMB 277 million, up 26.7% YoY [20] Market Performance - The company's stock price has shown strong performance, with a 52-week range of RMB 7.10 to RMB 13.29, and a closing price of RMB 12.10 as of April 30 [5] - The company's stock outperformed the CSI 300 index over the past three months, with an absolute gain of 5.9% and a relative gain of 0.3% [6]